By Andreas Hoenig, dpa
The plans include the development of a national CO2 transport network to facilitate carbon capture and storage (CCS), particularly for hard-to-abate industrial sectors.
The Cabinet’s decision marks a significant policy shift. Until now, the use of CCS technologies has been effectively blocked in Germany.
The bill must still be passed by lawmakers in parliament.
Economy Minister Katherina Reiche described the package as a “milestone” in decarbonising German industry. Reiche’s predecessor, Robert Habeck, had also proposed similar legislation, but political disagreements in the previous coalition government derailed those plans.
The legislation would allow CO2 to be captured at industrial sites, transported via pipelines, and stored underground, primarily beneath the seabed in Germany’s exclusive economic zone and on the continental shelf. Storage in coastal waters and protected areas would be prohibited.
The focus is on sectors where emissions are currently unavoidable, such as cement, lime and aluminium production. These processes cannot yet be decarbonised via electrification or material substitution. However, the law would explicitly exclude emissions from coal-fired power plants from being stored via this method.
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The government also wants to enable the construction of CO2 pipelines and allow German participation in cross-border storage projects, such as those in Norway. While permanent CO2 storage on land would not be permitted nationwide, states would have the option to legalise it through regional legislation.
Industry welcomes the move
The business community broadly supports the proposal. Achim Dercks, deputy head of the Association of German Chambers of Commerce and Industry, said carbon capture and storage could play a “key role” in achieving climate neutrality.
Even with renewable energy and hydrogen infrastructure, he argued, CO2 emissions in some industrial sectors remain difficult to eliminate entirely.
Environmental groups voice concerns
Environmental groups were critical, however.
Greenpeace climate and energy policy expert Sophia van Vügt warned that the bill risks undermining effective climate action.
“A responsible energy transition effectively and quickly reduces climate-damaging gases,” she argued. “Instead, the coalition plans to inject them under the North Sea. Even gas-fired power plants would be allowed to use the technology.”
The German Renewable Energy Federation cautioned that CCS should not become a backdoor for new fossil fuel dependencies.
